This comment likely originated from a landlord, and the sentiment is this: I’d rather work directly with someone who doesn’t understand the market as I do. The truth is, using an industrial real estate agent will not cause your lease rates to increase. Actually, you’ll probably get a much better rate using an agent than you would trying to negotiate it yourself.
That’s simply because when an agent is negotiating on your behalf, both parties are in the industry, which levels the playing field. The landlord has his own agent, and you’ll benefit from your agent’s experience and expertise.
There are other benefits to working with an industrial real estate agent, whether you’re looking to lease or buy:
- Your agent’s skilled negotiation will ensure a competitive atmosphere that should benefit you
- Your agent will negotiate renewal rates and time periods in the lease term that carry less, or even no, base rent
- Your agent can negotiate reduced base rent and capped or limited operating costs
- Your agent can add or subtract lease terms that can significantly reduce costs
- Your agent can streamline and expedite the entire process
So what does it cost to enjoy these benefits? You may be surprised to learn that hiring an industrial real estate agent to represent you will cost you nothing. Typically, your agent’s fee will be paid by the landlord as part of what he pays to his own agent.
If your only remaining concern is that an industrial real estate agent might slow down or hamper the process during the property search – if you think you can handle the property search just fine on your own – we invite you to read our posts, “How to Avoid a Big Mistake during the Industrial Real Estate Tour” and “The Hidden Trouble with the Landlord’s Agent.”
Then ask yourself if you’d feel better served using a professional or if you’d feel comfortable negotiating directly with the landlord and his agent, keeping in mind that both complete transactions like these for a living.